Cadila, Glenmark, Lupin receive FDA warnings regarding quality concerns. Sun Pharma to distribute cancer treatment drugs in China through AstraZeneca. Xerox considers acquiring HP for $27bn. SoftBank reports first quarterly operating loss.
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Blasphemy!: In the wake of the recent accusations against the CEO and CFO of the company, Indian IT giant Infosys, in a statement to the exchanges has condemned the allegations made by some whistleblowers. "Infosys has strong processes, even God can't change the numbers of the company", said Chairman Nandan Nilekani.
The company also said that it has appointed an external law firm to conduct an independent investigation into the allegations and "will share the outcome of the investigation at the relevant time with all stakeholders. ToI
Bogus!: Following reports by news daily that the company is laying off around 10% (c. 2,200 people) of the workforce in the mid and senior rung, Infosys clarified that the process was performance-linked. "This is not laying off, if you don't perform for two years or two quarters or whatever then you are asked to go, it's a performance related thing", clarified the IT giant. Livemint
Fall From Grace: As per recent data by San Francisco-headquartered app analytics firm App Annie, calling and messaging platforms such as Telegram and Signal has witnessed an increase in the number of downloads following repeated instances of security breaches by WhatsApp.
Data from the firm showed that Signal skyrocketed to the 39th position, up from its 105th position just a week ago in the social networking app downloads category in India on the iOS app store on November 3. Similarly on Google Play, Signal climbed to the 31st position in the communications app downloads category in India on November 1, a jump from its 255th position a week ago.
Alas!: Meanwhile, WhatsApp Messenger dropped from the number one position to number four in the most downloaded apps in the communications category on Google Play over the past week trailing behind UC browser, Facebook Messenger and Truecalller.
Similarly on Google Play, Signal peaked at 31st position in the communications app downloads category in India on November 1, a jump from its 255th position a week ago. ET Tech
Following the lack of fresh demand for loans in the infrastructure sector, private lender, ICICI Bank disbanded its project finance division in September.
While the bank is still open to lending opportunities in the sector, it has reallocated the specialised staff to its larger wholesale banking vertical that caters to clients across sectors.
Zooming Out: The ongoing slowdown in the Indian economy has led to lenders shifting their focus from large corporate borrowers to retail loans.
The What: The US health care watchdog, Food and Drug Administration (FDA) has sent warning notices to three major Indian drugmakers - Cadila Healthcare, Glenmark Pharmaceuticals and Lupin.
What Does This Mean: A plant with a warning letter is barred from introducing new products in the US, stymieing the company’s ability to grow revenue in the world’s top pharmaceutical market. BS
Good To Know: Indian pharmaceutical factories collectively produce about 40 per cent of the American generic drug supply.
Indian drugmaker Sun Pharmaceutical has said that it would begin distributing some of its cancer treatment drugs in China through English-Swedish multinational pharmaceutical and biopharmaceutical company AstraZeneca.
Sun Pharma will be responsible for development, regulatory filings and manufacturing of the drugs covered in the deal, while AstraZeneca will exclusively promote and distribute the products in China. The agreement will have an initial tenure of 10 years. Business Today
Fitch Perfect (Not Really): On Wednesday, Fitch Solutions raised India’s fiscal deficit forecast to 3.6% of GDP for this FY from 3.4% as weak economic growth take a toll on revenue collection, in addition to the government’s recent sweeping corporate tax rate cut.
The ratings agency said the revision reflected “our view for a larger slippage versus the government’s 3.3% target” Fitch said weak growth and the rate cut “amid no intention to reduce fiscal spending” had precipitated this change in numbers. Hindu BusinessLine
Waiting on the World to Change: Saying real estate was one sector of the economy the government had not yet touched since August when it began making various interventions to revive the economy, Finance Minister Nirmala Sitharaman recently said the government is “very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector”.
Sitharaman said the real estate sector was particularly important for the economy since it has a spillover effect on other segments. A boost in the real estate sector – which has also been negatively affected by the ongoing slowdown – would help not only home-buyers but also several core industries. The Telegraph
Making an Offer: Xerox, which makes printers and copiers, is reportedly planning to make a cash-and-stock offer for PC- and printer-maker HP.
Xerox, which has a market cap of $8.05bn compared to HP’s $27.7bn, apparently has an informal funding commitment from a major bank.
Combining Xerox and HP could see more than $2bn saved in expenses. And both companies are looking to cut costs. Last month, HP said it would cut about 16% of its workforce by 2022 as part of a poad restructuring plan to save $1bn a year. Xerox, on the other hand, said it would be selling its stake in a joint venture with Japan’s Fujifilm for $2.3bn. CNBC
Soft-Tank: For the first time in 14 years, SoftBank Group has reported a quarterly operating loss. The loss – which was $6.5bn – was for the three months ended September 30. It was mainly because of the Japanese conglomerate writing down some of its major investments including WeWork and Uber.
Uber’s IPO was not as successful as expected, and its share price has been consistently uninspiring. And WeWork’s IPO ambitions were derailed due to concerns over its perceived-as-oversold valuation and its business model. DealStreetAsia
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